→ JOINT LIABILITY GROUP LOAN

JOINT LIABILITY GROUP LOAN

Joint Liability Group is a homogeneous group of micro entrepreneurs with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group from which small loans are given to the members for meeting their productive and emergent credit needs at such rate of interest, period of loan and other terms as the group may decide.

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15 Days

Rs. 50,000 - 2 Lac 

Loan amount
10 Years

12 / 18 / 24 mnths

Period
Interest

PF - 3.00 % + GST

Charges and Fees
Features and Benefits
  • Can be opened by all individuals including Minors under Guardianship
  • Minimum deposit amount can be invested from Rs 500/- and in multiples of Rs 100/-. 
  • Deposit period ranges from 12 months to 60 months
  • For Women Depositors 0.50% and for Senior Citizen Depositors 0.75% Extra interest on above rates
  • Nomination Facility Available, Loan Facility Available.
  • Pre-Mature Closure is allowed, subject to applicable norms.
Terms and Conditions
  • For delay in payment of monthly installments, a penalty will be charged at the rate of Rs 2/- for every Rs 100/- per month. 
  • A fraction of month will be treated as full month for the purpose of calculating penalty. 2% Pre-Closure Charges applicable
  • The Period and Installment amount is Fixed at the time of Deposit account opening. There would be no changes in that.
  • Its mandatory to become as a member of the CITO Nidhi Ltd. Member should subscribe for minimum 10 Shares with face value of Rs 10/- per share and total value of Rs 100/-. Should comply with RBI KYC norms and should provide original KYC documents along with photocopy for verification.
  • Interest will be calculated at the rate applicable for the period the deposit has actually remained with the Bank. The rates are subject to change from time to time and same will be notified. All Guidelines applicable with regard to acceptance, payment and transfer of term deposits will apply to the deposits acceptance under this scheme.
  • All resident Individuals Self-employed can avail as a Group
  • To build mutual trust and confidence between the bankers and the rural/ urban poor.
  • To encourage banking activity both on thrift as well as credit side in a segment of the population that the formal financial institutions usually find difficult to cover.
  • To meet the credit needs of the poor by combining flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
  • Simple Documentation. Easy EMI payments Option.
  • Pre-Mature Closure is allowed, subject to applicable charges.
  • CIBIL deviation allowed on satisfactory justification
  • For delay in payment of monthly installments, a penalty will be charged at the rate of Rs 2/- for every Rs 100/- per month. 
  • A fraction of month will be treated as full month for the purpose of calculating penalty. 2% Pre-Closure Charges applicable
  • The Period and Installment amount is Fixed at the time of Deposit account opening. There would be no changes in that.
  • Its mandatory to become as a member of the CITO Nidhi Ltd. Member should subscribe for minimum 10 Shares with face value of Rs 10/- per share and total value of Rs 100/-. Should comply with RBI KYC norms and should provide original KYC documents along with photocopy for verification.
  • Interest will be calculated at the rate applicable for the period the deposit has actually remained with the Bank. The rates are subject to change from time to time and same will be notified. All Guidelines applicable with regard to acceptance, payment and transfer of term deposits will apply to the deposits acceptance under this scheme.

Interest Rates Chart for Different Tenures

Loan AmountMinimum Rs 50,000/-  Maximum Rs 2.00 lakh
Repayment Tenor12 Months / 18 Months / 24 Months
Processing Charges3.00% on Loan Amount + GST
Foreclosure Charges4% on Loan outstanding.
Primary SecurityHypothecatin of Consumer  Durables in favor of CITO Nidhi.
GuaranteeRemaining members should stand as guarantors
Collateral SecurityWill be sought if required and based on quantum of Finance
Co-ApplicantCo-Applicant should be Spouse or any Blood relative acceptable to Bank.
Other Terms & Conditions
  • JLG Group should consists of 5 individual members and should be self-employed persons only and will be in any petty business activity.
  • The members start thrift with the Bank for minimum period of 3 months. 
  • Post 3 months, Bank can visit the group and assess the value of finance to be recommended.
  • Own House proof Mandatory (for any one of the Group).
  • Loan amount will  be credited directly to the Group Savings Account or Individual SB accounts (as required)
  • Hypothecation of Assets created out of Bank finance with personal guaranty and Group guarantee. 
  • Required to execute Inter se Agreement by All members and articles of agreement by authorized members
  • Penal Interest of 2% and EMI bounce charges of 5% of EMI would be applicable as per Mortgage Loan policy on delayed payments
  • Its mandatory to become as a member of the CITO Nidhi Ltd, and Company will issue minimum 10 shares of Rs.10/- each with total value of Rs.100/- towards share capital
  • Interest will be calculated at the rate applicable for the period of the Loan has actually remained with the Bank. The rates are subject to change from time to time and same will be notified. 
  • All Guidelines applicable with regard to Sanction, Disbursement and Repayment of Loan will apply to the Loan Policy acceptance under this scheme.